CLASSIFICATION AS NPA

              CLASSIFICATION AS NPA     

Term Loan	If Interest and/ or instalment of principal remain overdue for aperiod of more than 90 days
CC/	if the account remains 'out of order or the limit is not renewed/reviewed within180 days from the
Credit/overdraft	due date of renewal. Out of order means an account where (i) the balance is continuously more
	than the sanctioned limit or drawing power OR (ii) where as on the date of Balance Sheet, there is
Bills	no credit in the account continuously for 90 days or credit is less than interest debited OR (iii)
	where stock statement not received for 3 months or more.  if the bill remains overdue for a
Agricultural accounts	(I) if loan has been granted for short duration crop: interest and/or instalment of principal
	remains overdue for two crop seasons beyond the due date.
	(ii) if loan has been granted for long duration crop: interest and/or instalment of principal remains
	overdue for one crop season beyond due date.
	(iii)Decision about crop duration to be taken by SLBC.
Loan against FD, NSC,	Advances against term deposits, NSCs eligible for surrender, IVPs, KVPs and life policies not
KVP, LIP	treated as NPAs provided sufficient margin is available. Advances against gold
	ornaments, govt securities and all other securities are not covered by this exemption
Loan  guaranteed  by	Loan guaranteed by Central Govt not treated as NPA for asset classification and provisioning till
Government	the Government repudiates its guarantee when invoked. Treated as NPA for income recognition.
	Advances guaranteed by the State Government classified as NPA as in other cases
Consortium advances	Asset classification of accounts under consortium should be based on the record of recovery of
	the individual member banks.